4C : market segmentation Flashcards
1
Q
define market segmentation
A
breaking down the market into sub-groups with similar characteristics .
2
Q
what are the advantages of market segmentation ?
A
- prevents products being promoted to the wrong people
- better marketing by targeting particular groups with particular products
- help identify new target segments that can be targeted for more profit
3
Q
what are some disadvantages of market segmentation ?
A
- segmentation increases costs: when serving several market segments the cost of production rises due to product variations
- promotion costs increases when separate media are used for different market segments
- larger amounts of stock has to be held by both the manufactures and distributors
4
Q
what are the types of segmentation ?
A
- Geographically : what region , urban/rural
- demographically : gender, age, income, religion
- Psychographically : life style & personality
- behaviourally : how they act e.g. do they make repeat purchases , on impulse or want high quality products
5
Q
what is differentiated strategy ?
A
when a business develops marketing strategies for particular segments of the market
5
Q
what is undifferentiated strategy ?
A
when a business promotes their product to the entire market , rather than a segment
6
Q
what is concentrated marketing ?
A
when a business concentrates on selling luxury, high quality items to consumers in a high income segment
